The Denmeade family has divested a landmark Wollongong pub to Damian Kelly’s Peak Investments as the Illawarra region continues to run hot.
After operating Wollongong’s large format Corrimal Hotel for nearly two decades, Andrew Denmeade has determined to change up the portfolio and listed the pub following his purchase last year of the Unanderra Hotel from league legend Craig Young, who had owned that institution for 24 years.
“The sale of the Corrimal hotel represented the right time for our family to exit the asset, which has proved a great hotel and investment for us over nearly the last two decades,” said Denmeade.
Stepping in to the Corrimal for nearly $10 million is Peak Investments – a newly formed private equity consortium led by former Citigroup banker Damian Kelly.
The Corrimal is the second pub for Peak Investments, following its purchase of Parramatta’s Rose & Crown in 2014, and a significant play on gaming pubs outside the Sydney metro.
The pub was marketed by CBRE Hotels in conjunction with Ray White Hotels, which both note the continued trend of transactions in key areas beyond Sydney.
“This sale is a good example of the market becoming more flexible around location when assessing quality opportunities,” noted CBRE Hotels national director, Daniel Dragicevich.
“Sydney gaming assets are becoming very tightly held, which has led to what are traditionally metro purchasers looking further afield.”
The Denmeade family executed some improvements to the business that Dragicevich reports had brought about sustained growth, and incorporated “all the key ingredients for a continually successful operation”.
Ray White director Andrew Jolliffe added that the whole Illawarra region has been seeing “high demand from experienced hoteliers”. The Corrimal’s large site and solid business mix will bode well with the high-growth area.
Far from representing an exit from the industry, the Denmeades report they are actively looking for opportunities, which will more than likely be also within the Illawarra region. As well as their newly acquired Unanderra Hotel, they continue to operate the 2013 AHA Hotel of the year, the Central Hotel in Shellharbour.